Fastly Reports Record Q4 Earnings, Stock Surges to All-Time High
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy FSLY?
Source: stocktwits
- Earnings Beat: Fastly reported Q4 revenue of $172.6 million and adjusted EPS of $0.12, both exceeding analyst expectations, indicating accelerated growth in revenue and profitability, which solidifies its position in the edge cloud market.
- Stock Surge: Fastly's stock soared 72% on Thursday to close at $16.04, marking its best single-day performance ever, reflecting strong market recognition of its robust earnings and optimistic outlook for 2026, likely attracting more investor interest.
- Analyst Target Increases: Analysts from RBC Capital, Piper Sandler, and DA Davidson raised their price targets for Fastly to $12, $14, and $13 respectively, indicating confidence in its future growth potential despite showing some downside risk.
- AI Traffic Growth: Fastly's AI-driven traffic is significantly increasing, with CEO Kip Compton highlighting that AI applications are driving the company towards faster growth and profitability, suggesting vast opportunities in large language models and agentic AI in the future.
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Analyst Views on FSLY
Wall Street analysts forecast FSLY stock price to rise
10 Analyst Rating
2 Buy
7 Hold
1 Sell
Hold
Current: 9.310
Low
10.00
Averages
11.70
High
14.00
Current: 9.310
Low
10.00
Averages
11.70
High
14.00
About FSLY
Fastly, Inc. provides a programmable edge cloud platform that helps the world’s brands deliver online experiences through edge compute, delivery, security, and observability offerings, improving site performance, and enhancing security at a global scale. The Company enables developers to deliver secure Websites and apps. The edge cloud is a category of Infrastructure as a Service (IaaS) that enables developers to build, secure, and deliver digital experiences at the edge of the Internet. The Company’s products and services includes Programmable Edge Platform, Network Services, Security, Compute, Observability, and Services. Its Network services include content delivery network, video / streaming, load balancing, image optimization, and origin connect. Its Security service includes Next-Gen WAF, bot management, DDoS protection, and others. The Company’s professional services include network services, managed security service, and response security service.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Fastly's Q4 Earnings Exceed Expectations, Shares Surge 72%
- Significant Revenue Growth: Fastly's Q4 revenue rose 23% year-over-year to $172.6 million, driven by a 19% increase in network services sales to $130.8 million and a 32% surge in security revenue to $35.4 million, showcasing the company's strong performance in the cloud platform market.
- Improved Profitability: Fastly reported an adjusted net income of $20.1 million, compared to a loss of $2.4 million in the same quarter last year, with adjusted earnings per share reaching $0.12, significantly exceeding Wall Street expectations and indicating a marked improvement in profitability.
- Optimistic Future Outlook: Fastly anticipates revenue growth of approximately 14% to $710 million by 2026, with operating income projected at $55 million and adjusted earnings per share at $0.26, reflecting the company's confidence in future growth, particularly driven by AI.
- Positive Market Reaction: Fastly's stock surged 72.29% to close at $16.04, resulting in a market capitalization of $1.4 billion, demonstrating strong investor confidence and market recognition of the company's future potential.
See More
Fastly Reports Record Q4 Earnings, Stock Surges to All-Time High
- Earnings Beat: Fastly reported Q4 revenue of $172.6 million and adjusted EPS of $0.12, both exceeding analyst expectations, indicating accelerated growth in revenue and profitability, which solidifies its position in the edge cloud market.
- Stock Surge: Fastly's stock soared 72% on Thursday to close at $16.04, marking its best single-day performance ever, reflecting strong market recognition of its robust earnings and optimistic outlook for 2026, likely attracting more investor interest.
- Analyst Target Increases: Analysts from RBC Capital, Piper Sandler, and DA Davidson raised their price targets for Fastly to $12, $14, and $13 respectively, indicating confidence in its future growth potential despite showing some downside risk.
- AI Traffic Growth: Fastly's AI-driven traffic is significantly increasing, with CEO Kip Compton highlighting that AI applications are driving the company towards faster growth and profitability, suggesting vast opportunities in large language models and agentic AI in the future.
See More
Fastly Shares Surge 72% After Strong Earnings Report
- Significant Revenue Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, driven by a 19% rise in network services sales to $130.8 million and a 32% surge in security revenue to $35.4 million, showcasing the company's robust performance in the cloud computing market.
- Improved Profitability: The company reported an adjusted net income of $20.1 million, compared to a loss of $2.4 million in the same quarter last year, with adjusted earnings per share reaching $0.12, significantly exceeding Wall Street expectations and indicating a marked improvement in profitability.
- Optimistic Future Outlook: Fastly anticipates revenue growth of approximately 14% to $710 million by 2026, with operating income projected at $55 million and adjusted earnings per share at $0.26, reflecting strong confidence in future growth, particularly driven by AI technology.
- Positive Market Reaction: Fastly's stock price soared 72% by the end of trading, indicating strong investor recognition of the company's performance and future prospects, further solidifying its position in the rapidly evolving cloud computing and AI markets.
See More
Fastly Reports Significant Revenue Growth in Q3
- Significant Revenue Growth: Fastly's quarterly revenue reached $172.6 million, marking a 23% year-over-year increase, with EPS doubling analyst expectations, indicating a structural 'inflection point' for the edge cloud platform.
- Surge in AI Traffic: CEO Compton highlighted the rise of agentic AI as a key business driver, noting that increased traffic from AI agents is fundamentally changing internet dynamics and is expected to significantly boost Fastly's business.
- Accelerated Security Revenue: Fastly's security revenue grew by 32%, driven by products designed to tackle specific AI traffic challenges, showcasing the company's strategic shift towards optimizing automated traffic rather than merely blocking it.
- Optimistic 2026 Outlook: CFO Rich Wong confirmed guidance for 2026 revenue between $700 million and $720 million, significantly above Wall Street estimates, reflecting the high-value nature of AI and security workloads that Fastly is positioned to capitalize on.
See More
U.S. Stocks Decline Midway, Nasdaq Drops Over 350 Points
- Market Performance: U.S. stocks traded lower midway through Thursday, with the Nasdaq Composite falling over 350 points, and the S&P 500 dropping 1.18% to 6,859.69, indicating a weakening market sentiment amid growing investor concerns about the economic outlook.
- Sector Dynamics: Utility stocks rose by 2.4%, while information technology stocks fell by 1.5%, reflecting a market preference for defensive sectors as investors seek stable returns in light of economic uncertainty.
- Stock Highlights: American Electric Power Company, Inc. (NASDAQ:AEP) shares gained around 5% after reporting adjusted earnings of $1.19 per share, down from $1.24 a year ago but exceeding the Street estimate of $1.15, demonstrating the company's resilience in challenging conditions.
- Economic Data: U.S. initial jobless claims fell by 5,000 to 227,000, although slightly above market estimates of 222,000, indicating labor market resilience that could positively impact economic recovery.
See More
Crocs Shares Surge 21% on Strong Earnings Guidance
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- Restaurant Brands Challenges: Despite reporting revenue and profit beats, Restaurant Brands' shares fell 6%, primarily due to rising costs, including beef, which pressured profits, reflecting the dual challenges of intensified industry competition and cost pressures.
- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
- Equinix Exceeds Guidance: Equinix shares rose 12% after projecting adjusted EBITDA of $5.141 billion to $5.221 billion by 2026, surpassing analyst expectations, demonstrating strong growth potential in the digital infrastructure sector.
See More
Fastly's Q4 Earnings Exceed Expectations, Shares Surge 72%
- Significant Revenue Growth: Fastly's Q4 revenue rose 23% year-over-year to $172.6 million, driven by a 19% increase in network services sales to $130.8 million and a 32% surge in security revenue to $35.4 million, showcasing the company's strong performance in the cloud platform market.
- Improved Profitability: Fastly reported an adjusted net income of $20.1 million, compared to a loss of $2.4 million in the same quarter last year, with adjusted earnings per share reaching $0.12, significantly exceeding Wall Street expectations and indicating a marked improvement in profitability.
- Optimistic Future Outlook: Fastly anticipates revenue growth of approximately 14% to $710 million by 2026, with operating income projected at $55 million and adjusted earnings per share at $0.26, reflecting the company's confidence in future growth, particularly driven by AI.
- Positive Market Reaction: Fastly's stock surged 72.29% to close at $16.04, resulting in a market capitalization of $1.4 billion, demonstrating strong investor confidence and market recognition of the company's future potential.
See More
Fastly Reports Record Q4 Earnings, Stock Surges to All-Time High
- Earnings Beat: Fastly reported Q4 revenue of $172.6 million and adjusted EPS of $0.12, both exceeding analyst expectations, indicating accelerated growth in revenue and profitability, which solidifies its position in the edge cloud market.
- Stock Surge: Fastly's stock soared 72% on Thursday to close at $16.04, marking its best single-day performance ever, reflecting strong market recognition of its robust earnings and optimistic outlook for 2026, likely attracting more investor interest.
- Analyst Target Increases: Analysts from RBC Capital, Piper Sandler, and DA Davidson raised their price targets for Fastly to $12, $14, and $13 respectively, indicating confidence in its future growth potential despite showing some downside risk.
- AI Traffic Growth: Fastly's AI-driven traffic is significantly increasing, with CEO Kip Compton highlighting that AI applications are driving the company towards faster growth and profitability, suggesting vast opportunities in large language models and agentic AI in the future.
See More
Fastly Shares Surge 72% After Strong Earnings Report
- Significant Revenue Growth: Fastly's Q4 revenue increased by 23% year-over-year to $172.6 million, driven by a 19% rise in network services sales to $130.8 million and a 32% surge in security revenue to $35.4 million, showcasing the company's robust performance in the cloud computing market.
- Improved Profitability: The company reported an adjusted net income of $20.1 million, compared to a loss of $2.4 million in the same quarter last year, with adjusted earnings per share reaching $0.12, significantly exceeding Wall Street expectations and indicating a marked improvement in profitability.
- Optimistic Future Outlook: Fastly anticipates revenue growth of approximately 14% to $710 million by 2026, with operating income projected at $55 million and adjusted earnings per share at $0.26, reflecting strong confidence in future growth, particularly driven by AI technology.
- Positive Market Reaction: Fastly's stock price soared 72% by the end of trading, indicating strong investor recognition of the company's performance and future prospects, further solidifying its position in the rapidly evolving cloud computing and AI markets.
See More
Fastly Reports Significant Revenue Growth in Q3
- Significant Revenue Growth: Fastly's quarterly revenue reached $172.6 million, marking a 23% year-over-year increase, with EPS doubling analyst expectations, indicating a structural 'inflection point' for the edge cloud platform.
- Surge in AI Traffic: CEO Compton highlighted the rise of agentic AI as a key business driver, noting that increased traffic from AI agents is fundamentally changing internet dynamics and is expected to significantly boost Fastly's business.
- Accelerated Security Revenue: Fastly's security revenue grew by 32%, driven by products designed to tackle specific AI traffic challenges, showcasing the company's strategic shift towards optimizing automated traffic rather than merely blocking it.
- Optimistic 2026 Outlook: CFO Rich Wong confirmed guidance for 2026 revenue between $700 million and $720 million, significantly above Wall Street estimates, reflecting the high-value nature of AI and security workloads that Fastly is positioned to capitalize on.
See More
U.S. Stocks Decline Midway, Nasdaq Drops Over 350 Points
- Market Performance: U.S. stocks traded lower midway through Thursday, with the Nasdaq Composite falling over 350 points, and the S&P 500 dropping 1.18% to 6,859.69, indicating a weakening market sentiment amid growing investor concerns about the economic outlook.
- Sector Dynamics: Utility stocks rose by 2.4%, while information technology stocks fell by 1.5%, reflecting a market preference for defensive sectors as investors seek stable returns in light of economic uncertainty.
- Stock Highlights: American Electric Power Company, Inc. (NASDAQ:AEP) shares gained around 5% after reporting adjusted earnings of $1.19 per share, down from $1.24 a year ago but exceeding the Street estimate of $1.15, demonstrating the company's resilience in challenging conditions.
- Economic Data: U.S. initial jobless claims fell by 5,000 to 227,000, although slightly above market estimates of 222,000, indicating labor market resilience that could positively impact economic recovery.
See More
Crocs Shares Surge 21% on Strong Earnings Guidance
- Crocs Strong Guidance: Crocs shares surged 21% after the company projected adjusted earnings between $2.67 and $2.77 per share for the current quarter, exceeding the market expectation of $2.52, indicating resilience and growth potential in the current economic climate.
- Restaurant Brands Challenges: Despite reporting revenue and profit beats, Restaurant Brands' shares fell 6%, primarily due to rising costs, including beef, which pressured profits, reflecting the dual challenges of intensified industry competition and cost pressures.
- Cognex Stock Surge: Cognex shares jumped over 37% after reporting adjusted earnings and revenue beats for the fourth quarter, along with optimistic guidance for the current quarter, showcasing significant advancements in AI-enabled industrial machine vision technology.
- Equinix Exceeds Guidance: Equinix shares rose 12% after projecting adjusted EBITDA of $5.141 billion to $5.221 billion by 2026, surpassing analyst expectations, demonstrating strong growth potential in the digital infrastructure sector.
See More
